A critical analysis on value for money audit on public sector of an organization.

A critical analysis on value for money audit on public sector of an organization.

Auditing has existed as long as man has been required to account for their transactions. A famous example is in St. Mathew’s Gospel (Chapter 25) when the rich man went on a journey and delivered his goods to a servant to look after them while he was away. On his return, he asked each of these servants to account for the goods with which he had been entrusted.

In the ancient ages, great land owners would not manage their own land, but would appoint stewards to manage their own land for them. The account of these land owners were checked by having them called out by those  who  gave  them  to  those  in  authority  (land  owners)  for  hearing otherwise called stewardship accounting.

Auditing can be defined as the process of an independent examination of  vouchers,  internal  control  system  and  financial  statements  of  an organization by a person or a group of persons called auditors so that the auditors can form and express opinion whether the vouchers, internal control system and financial statement, give a true and fair view of the organization.

Auditing is carried in both the public and private sectors. In the case of public  sector,  there  are  two  foremost  types  of  audit  that  are  carried  out namely: Regulatory audit and financial audit and the third type is value for money (VFM) audit which is yet to be fully integrated in most part of the world.